Judges: Williams
Filed: Aug. 10, 2016
Latest Update: Mar. 03, 2020
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 15-1330 THOMAS M. JANUSZ, JR., Plaintiff-Appellant, v. CITY OF CHICAGO, et al., Defendants-Appellees. _ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 03 CV 4402 — Joan B. Gottschall, Judge. _ ARGUED FEBRUARY 11, 2016 — DECIDED AUGUST 10, 2016 _ Before RIPPLE, KANNE, and WILLIAMS, Circuit Judges. WILLIAMS, Circuit Judge. Thomas Janusz sued the City of Chicago and several
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 15-1330 THOMAS M. JANUSZ, JR., Plaintiff-Appellant, v. CITY OF CHICAGO, et al., Defendants-Appellees. _ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 03 CV 4402 — Joan B. Gottschall, Judge. _ ARGUED FEBRUARY 11, 2016 — DECIDED AUGUST 10, 2016 _ Before RIPPLE, KANNE, and WILLIAMS, Circuit Judges. WILLIAMS, Circuit Judge. Thomas Janusz sued the City of Chicago and several ..
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In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 15‐1330
THOMAS M. JANUSZ, JR.,
Plaintiff‐Appellant,
v.
CITY OF CHICAGO, et al.,
Defendants‐Appellees.
____________________
Appeal from the United States District Court for the
Northern District of Illinois, Eastern Division.
No. 03 CV 4402 — Joan B. Gottschall, Judge.
____________________
ARGUED FEBRUARY 11, 2016 — DECIDED AUGUST 10, 2016
____________________
Before RIPPLE, KANNE, and WILLIAMS, Circuit Judges.
WILLIAMS, Circuit Judge. Thomas Janusz sued the City of
Chicago and several of its police officers, alleging that the
officers had acted unlawfully in arresting him. The district
court granted summary judgment in favor of the City and
the officers. In doing so, it applied the single‐recovery rule
and found that in a separate but related state court action,
Janusz had already obtained the damages to which he was
2 No. 15‐1330
entitled. We conclude that the district court correctly found
that the single‐recovery rule barred Janusz from recovering
damages in his federal lawsuit, since both lawsuits involve a
single, indivisible set of injuries for which Janusz has already
received compensation. We also agree with the district court
that Janusz is judicially estopped from arguing that the
judgment in the state action was not fully satisfied—a posi‐
tion at odds with several statements he made to the state
court. So we affirm the district court’s judgment.
I. BACKGROUND
A. Janusz’s Arrest and Termination
In December 2001, three Chicago police officers—
Defendants Alan Lucas, Parris George, and Gina Liberti—
approached Plaintiff Thomas Janusz at a Chicago‐area gas
station. The officers claimed that they went to the area after
receiving an anonymous tip about a drug transaction, and
that they approached Janusz after noticing that his license
plate was expired and that he was pacing around the gas sta‐
tion parking lot with a duffle bag. The officers further
claimed that as they advanced, Janusz’s companion, Paula
Siragusa, informed them that Janusz had been smoking
crack cocaine and that a plastic cup containing cocaine was
in Janusz’s car. The officers proceeded to search Janusz’s
duffle bag, discovered that it contained several thousand
dollars in cash, and arrested Janusz. The police also discov‐
ered a white substance in a plastic cup in Janusz’s car. How‐
ever, the substance was later determined not to be cocaine.
At the police station, the three arresting officers were
joined by a fourth officer—Defendant Amy Mugavero Lu‐
cas—and obtained Janusz’s consent to search his apartment,
No. 15‐1330 3
which was located above one of the funeral homes he man‐
ages for Keystone Illinois, Inc. (Janusz claims that this con‐
sent was acquired through coercion.) At the apartment, the
officers allegedly found approximately $18,000 in cash and
several illicit drugs—crystal methamphetamine, cocaine, and
illegal anabolic steroids.
Approximately five months later, Janusz filed a motion
to quash his arrest. A judge granted the motion, finding that
the officers’ stated reasons for approaching and ultimately
arresting Janusz at the gas station were implausible. (The
district court has explained in some detail why the state
judge likely concluded this. See generally Janusz v. City of Chi.,
797 F. Supp. 2d 884, 886–89 (N.D. Ill. 2011). Regardless, that
finding is not relevant for this appeal.) The charges against
Janusz were dropped immediately thereafter. By that time,
however, the arrest had set other negative events in motion.
Keystone suspended Janusz following his arrest and in‐
stalled Brian Durante as his replacement. Durante and an‐
other coworker, Thomas Kotrba, later told several individu‐
als within and outside of Keystone that Janusz had been sell‐
ing crystal meth, operating a meth lab in his apartment, and
stealing from clients. Unsurprisingly, Janusz was fired.
B. Lawsuits Against Keystone and the City
Janusz filed two separate suits in connection with his ar‐
rest and termination. He sued Keystone, Durante, and Ko‐
trba (“Keystone defendants”) in Illinois state court, alleging
breach of employment contract, defamation, and intentional
infliction of emotional distress. He also sued the City of Chi‐
cago and Officers Lucas, George, Liberti, and Mugavero Lu‐
4 No. 15‐1330
cas (“City defendants”) in federal court, alleging violations
of his Fourth Amendment rights and various state laws.
The Keystone case proceeded to trial, and a jury found in
Janusz’s favor and awarded approximately $3,177,500. But
both sides were disappointed with the result and appealed.
In order to stay collection of the judgment, Keystone also
filed an appeal bond for approximately $4.8 million. While
the appeals were pending, the parties executed a settlement
agreement requiring Janusz to execute a release in exchange
for $3 million ($177,500 less than the jury award). Critically,
however, the parties stipulated to the trial judge that “Key‐
stone ha[d] paid [Janusz] all monies due and owing him as
the result of the Judgment previously entered against Key‐
stone.” The trial judge vacated the judgment and dismissed
the appeal pursuant to 735 Ill. Comp. Stat. 5/12‐183(h) and
Illinois Supreme Court Rule 309.
Meanwhile, the City case remained at the summary
judgment stage. The original district judge denied in part the
City defendants’ summary judgment motion, and in doing
so declined to determine the effect of the Keystone settlement
on Janusz’s damages claim. After a new judge was assigned,
the City defendants renewed their summary judgment mo‐
tion as to damages, arguing that Illinois’s single‐recovery
rule prevented Janusz from recovering any damages relating
to the lost wages and the emotional injuries for which the
Keystone settlement had compensated him. The defendants
also argued that the doctrine of judicial estoppel barred Ja‐
nusz from claiming that the Keystone judgment had not been
fully satisfied when the state court vacated it. The district
court granted the City defendants’ motion; however, the ac‐
companying court order did not constitute a final appealable
No. 15‐1330 5
judgment, since the Keystone settlement did not encompass
all of the damages Janusz sought from the City defendants.
This prompted the parties to stipulate that Janusz would
“permanently waive[] and relinquish[] his right to seek to
recover all damages that were not barred” by the summary
judgment opinion. The district judge entered a judgment to
that effect, and this appeal followed.
II. ANALYSIS
We review the district court’s grant of summary judg‐
ment de novo and construe all reasonable inferences in favor
of Janusz as the non‐moving party. Goodman v. Nat’l Sec.
Agency, Ins., 621 F.3d 651, 653–54 (7th Cir. 2010). Summary
judgment is appropriate when “there is no genuine dispute
as to any material fact and the movant is entitled to judg‐
ment as a matter of law.” Fed. R. Civ. P. 56(a); see also Draper
v. Martin, 664 F.3d 1110, 1112–13 (7th Cir. 2011).
On appeal, Janusz argues that the district court erred in
granting summary judgment in the City defendants’ favor
on his damages claim. Specifically, he contends that the sin‐
gle‐recovery rule does not prevent him from obtaining dam‐
ages here because the judgment in Keystone was vacated, and
that he should not be judicially estopped from claiming that
the parties in Keystone settled for an amount less than the
judgment. We disagree.
A. Single‐Recovery Rule Bars Damages
Janusz has brought claims under both federal and Illinois
law, and in both jurisdictions, “[a] tort victim can obtain on‐
ly one recovery for his harm, no matter how many tortfea‐
6 No. 15‐1330
sors inflicted it.”1 Reliance Nat’l Ins. Co. v. Great Lake Aviation,
Ltd., 430 F.3d 412, 416 (7th Cir. 2005) (quoting Bosco v. Ser‐
hant, 836 F.2d 271, 280 (7th Cir. 1987)); see also Thornton v.
Garcini, 928 N.E.2d 804, 811 (Ill. 2010) (“A plaintiff may …
receive only one full compensation for his or her injuries,
and double recovery for the same injury is not allowed.”).
“That is so ‘regardless of whether or not the plaintiff has re‐
covered all that he or she might have recovered’ in the initial
proceeding.” Saichek v. Lupa, 787 N.E.2d 827, 835 (Ill. 2003)
(quoting Dillon v. Evanston Hosp., 771 N.E.2d 357 (Ill. 2002)).
The rule applies if “the amount of the loss has been judicially
determined and a valid and final judgment has been en‐
tered.” Id. at 833 (citing Restatement (Second) of Judgments
§ 50, cmt. d (1982) (“[W]hen a judgment is based on actual
litigation of the measure of a loss, and the judgment is there‐
after paid in full, the injured party has no enforcible [sic]
claim against any other obligor who is responsible for the
same loss.”)).
We find that the Keystone litigation involved a “valid and
final judgment” for purposes of the single‐recovery rule. The
court in Keystone vacated the judgment and dismissed the
case pursuant to § 12‐183(h) of the Illinois Code of Civil Pro‐
cedure, which states, “Upon the filing of a release or satisfac‐
tion in full satisfaction of judgment, signed by the party in
whose favor the judgment was entered or his or her attor‐
ney, the court shall vacate the judgment, and dismiss the ac‐
1 We assume, as the parties do, that both federal common law and Il‐
linois law govern Janusz’s recovery of damages, since he has filed claims
under both federal and state law. See, e.g., Graham v. Satkoski, 51 F.3d 710,
713 (7th Cir. 1995) (“Federal common law governs the recovery of dam‐
ages for complaints filed under 42 U.S.C. § 1983.”).
No. 15‐1330 7
tion.” 735 Ill. Comp. Stat. 5/12‐183(h). Generally, a vacated
judgment in one case has no effect on future cases under Illi‐
nois law, and Illinois law “is determinative on the question
because the judgment in question was rendered by an Illi‐
nois state court.” Pontarelli Limousine, Inc. v. City of Chi., 929
F.2d 339, 340 (7th Cir. 1991); see also Matchett v. Rose, 344
N.E.2d 770, 779 (Ill. 1976). However, in Saichek v. Lupa, 787
N.E.2d 827 (Ill. 2003), the Illinois Supreme Court carved out
a narrow exception for the preclusive effect of vacaturs and
dismissals made under § 12‐183(h).
The plaintiff in Saichek was a passenger in a taxicab that
was involved in a traffic collision. The plaintiff suffered inju‐
ries as a result and sued both the cab driver and the driver of
the car that collided with the cab. After the cab driver failed
to respond to the complaint, the plaintiff obtained a default
judgment against him and initiated nonwage garnishment
proceedings against his insurer. The parties ultimately exe‐
cuted a “Satisfaction Release of Judgment” that stipulated
the insurer had paid the plaintiff the full amount of the
judgment, and the trial court vacated the judgment and dis‐
missed the action pursuant to § 12‐183(h).
The driver of the other car then filed a motion to dismiss,
arguing that the plaintiff had obtained all that she was enti‐
tled to receive for the single, indivisible set of injuries that
she had suffered. The Illinois Supreme Court agreed with
the driver, explaining that because the judgment had been
fully satisfied, the plaintiff was precluded from relitigating
the damages issue. 787 N.E.2d at 833. Several other Illinois
cases comport with Saichek, insofar as they describe the pur‐
pose of § 12‐183(h) as “serv[ing] as proof of the payment of
the judgment, barring any further attempts by the judgment
8 No. 15‐1330
creditor to enforce the judgment.” Bricks, Inc. v. C & F Devel‐
opers, Inc., 836 N.E.2d 743, 747 (Ill. App. Ct. 2005); Klier v.
Siegel, 558 N.E.2d 583, 586 (Ill. App. Ct. 1990) (“It is clear that
the purpose of a section 12‐183 proceeding is to determine
whether all sums of money ‘really due’ from the judgment
debtor have in fact been paid and the judgment satisfied.”).
Janusz attempts to distinguish Saichek on the ground that
the plaintiff “was precluded from relitigating the amount of
her damages because the judgment was final and valid, not
because it was satisfied.” Not so. The Saichek Court expressly
referenced satisfaction in its analysis. 787 N.E.2d at 833 (“Be‐
cause the judgment has now been satisfied, and because plaintiff
is precluded from relitigating the question of her damages,
she has already received all that she is entitled to receive for
the injuries that gave rise to this litigation.” (emphasis add‐
ed)). Janusz also argues that Saichek is distinguishable be‐
cause it did not involve an appeal that was pending when
the parties sought to vacate the judgment and dismiss the
case under § 12‐183(h). Cf. Ballweg v. City of Springfield, 499
N.E.2d 1373, 1375 (Ill. 1986) (“For purposes of applying the
doctrine of collateral estoppel, finality requires that the po‐
tential for appellate review must have been exhausted.”).
But we see nothing in Saichek that indicates this modest fac‐
tual variance is relevant. Indeed, although the parties in Key‐
stone initially pursued separate appeals, they ultimately
abandoned those appeals, stipulated that the judgment had
been fully satisfied, and petitioned the trial court for vacatur
and dismissal.
Janusz looks to Pontarelli Limousine v. City of Chicago,
where we held that a vacated judgment in a state court ac‐
tion had no collateral estoppel effect under Illinois law on a
No. 15‐1330 9
similar federal dispute. 929 F.2d at 340–41. Pontarelli bears
some similarity to the current dispute: after judgment on the
jury’s award was entered and while the defendant’s appeal
was pending, the parties entered into a settlement agreement
to voluntarily dismiss the action. But Pontarelli did not in‐
volve § 12‐183(h), and there is no indication that the parties
stipulated or otherwise communicated to the court that the
payments made to the plaintiffs had fully satisfied the
judgment. So Janusz’s reliance on Pontarelli is misplaced.
Finally, Janusz argues against applying Saichek because
doing so will deter parties from settling cases in the future.
We understand Janusz to be implying that if a plaintiff dis‐
covers that settling pursuant to § 12‐183(h) might preclude
her from pursuing other alleged wrongdoers, she would
forgo settlement and see the dispute to the end—at poten‐
tially great cost to the parties and the court. While Janusz’s
prediction has merit, it may be equally possible that Janusz’s
preferred approach could deter a defendant from settling, out
of concern that a settlement might not conclusively settle the
matter: the plaintiff may later obtain a damages award from
a different party who, in turn, might seek contribution from
the defendant. We leave it to Illinois courts to weigh these
and other relevant considerations in future cases that in‐
volve vacated judgments under § 12‐183(h).
Before continuing, we acknowledge that Saichek appears
to be an idiosyncratic decision with few (if any) true analogs.
That alone, however, does not empower us to ignore an un‐
ambiguous decision rendered by a state supreme court on a
matter of state substantive law. See Williams, McCarthy, Kin‐
ley, Rudy & Picha v. Nw. Nat’l Ins. Grp., 750 F.2d 619, 624 (7th
Cir. 1984) (observing that “the Illinois Supreme Court is the
10 No. 15‐1330
final authority on the meaning of Illinois statutes”). Saichek
was decided in 2003—approximately six years before Janusz
and Keystone jointly sought to dismiss the Keystone case un‐
der § 12‐183(h). That gave Janusz ample opportunity to re‐
view Saichek and to decide whether to continue with his ap‐
peal (rather than abandon it), or even to press for a quicker
resolution in this case relative to Keystone. Janusz must live
with the consequences of his decisions.
B. Judicial Estoppel Applies
In an apparent attempt to circumvent the single‐recovery
rule, Janusz emphasizes that the settlement in Keystone was
for less than the full amount of the judgment, thereby sug‐
gesting that the judgment was not fully satisfied. But Janusz
unambiguously informed the Keystone court that the judg‐
ment had been fully satisfied—information the court relied
on in vacating the judgment and dismissing the case. As a
result, Janusz is judicially estopped from suggesting that the
Keystone judgment was not fully satisfied due to the settle‐
ment amount.
When the doctrine of judicial estoppel is invoked against
a party, we examine three factors: “(i) whether the party’s
positions in the two litigations are clearly inconsistent; (ii)
whether the party successfully persuaded a court to accept
its earlier position; and (iii) whether the party would derive
an unfair advantage if not judicially estopped.” Wells v.
Coker, 707 F.3d 756, 760 (7th Cir. 2013). On at least one occa‐
sion, we have suggested that state law, not federal common
law, should apply when the judgment at issue was rendered
by a state court. See Saecker v. Thorie, 234 F.3d 1010, 1014 (7th
Cir. 2000). But we need not resolve that issue here, since Illi‐
nois law does not differ significantly from federal law on the
No. 15‐1330 11
issue. See People v. Caballero, 794 N.E.2d 251, 262 (Ill. 2002)
(“[T]he party to be estopped must have (1) taken two posi‐
tions, (2) that are factually inconsistent, (3) in separate judi‐
cial or quasi‐judicial administrative proceedings, (4) intend‐
ing for the trier of fact to accept the truth of the facts alleged,
and (5) have succeeded in the first proceeding and received
some benefit from it.”).
The district court correctly concluded that judicial estop‐
pel applies here. First, Janusz has taken inconsistent posi‐
tions as to whether the Keystone judgment was satisfied by a
payment of the entire judgment amount. Janusz and Key‐
stone jointly executed a “Release (Satisfaction) of Judgment”
in which they declared that Janusz “ha[d] received full satis‐
faction and payment” for the $3,177,500 judgment. Separate‐
ly, the parties executed a stipulation stating that “Keystone
had paid Plaintiff all monies due and owing to him as the
result of the Judgment previously entered against Key‐
stone.” Both documents were attached to Keystone’s motion
to vacate the judgment and dismiss the case with prejudice,
which the state court granted. These statements conflict with
Janusz’s repeated claim in this case that he received only $3
million from Keystone.
Unwilling to acknowledge this clear inconsistency, Ja‐
nusz contends that he and Keystone merely conveyed to the
Keystone court that the settlement, not the judgment, had been
fully satisfied. But this ignores the unambiguous language of
the Release, the Stipulation, and Keystone’s Motion. Janusz
argues that focusing on these documents without regard to
the existence of a settlement somehow elevates “form over
substance.” However, Janusz has failed to cite a single fact
demonstrating that the court in Keystone could have reason‐
12 No. 15‐1330
ably believed that the parties’ settlement involved an
amount different from the judgment. Notably, there is no
evidence that Janusz or Keystone ever provided a copy of
their settlement agreement to the court. And at oral argu‐
ment, Janusz was unable to explain why he could not have
modified the Release and the Stipulation to note the precise
amount of the settlement.
Second, the court in Keystone clearly accepted Janusz’s
earlier position. In its order granting Keystone’s motion to
vacate and dismiss, the court found that “the Judgment pre‐
viously entered against Keystone in the amount of Three‐
Million One‐Hundred and Seventy‐Seven Thousand Five‐
Hundred and 00/100s United States Dollars ($3,177,500.00)
ha[d] been remitted and satisfied in full.” At oral argument,
Janusz conceded that he never informed the Keystone court
that this statement was incorrect and should be modified ac‐
cordingly.
Third, we find that Janusz would be unfairly enriched if
he were not judicially estopped. We disagree with Janusz’s
claim that he did not derive any benefit from his statements
to the Keystone court. As the City defendants correctly ob‐
serve, the settlement agreement obligated Janusz to help ob‐
tain vacatur, dismissal, and discharge of Keystone’s appeal
bond by co‐signing the stipulation and release and by “ex‐
ecut[ing] any and all supplementary documents … which
may be necessary or appropriate to give full force and effect
to the terms and intent of this Agreement.” A plain reading
of the agreement indicates that Janusz was to undertake
these actions in exchange for receiving $3 million. We also
find that it would be unfair for Janusz to seek compensation
in addition to the $3 million he has already received. As dis‐
No. 15‐1330 13
cussed above, Saichek instructs that Janusz is not entitled to a
second bite at the apple simply because he believes he
should have been awarded more money on the first go‐
round. While the City defendants may not be immune from
a contribution action by the Keystone defendants, it would be
unfair to require them to continue defending claims “based
on the very same theory of recovery for the very same inju‐
ries in the very same [event]” that gave rise to the Keystone
judgment. Saichek, 787 N.E.2d at 834–35.
Because we find that the single‐recovery rule and the
doctrine of judicial estoppel apply here, we need not address
the City defendants’ alternative argument that the Keystone
settlement agreement released the City defendants from lia‐
bility for injuries jointly caused by the Keystone and City de‐
fendants.
III. CONCLUSION
The judgment of the district court is AFFIRMED.